labor demand for low-skilled workers in the


Labor demand for low-skilled workers in the United States is w= 24 -0.1E where E is the number of workers (in millions) and w is the hourly wage. There are 120 million domestic U.S. low-skilled workers who supply labor inelastically. If the United States opened its borders to immigration, 20 million low-skill immigrants would enter the United States and supply labor inelastically. What is the market-clearing wage if immigration is not allowed? What is the market- clearing wage with open borders? How much is the immigration surplus when the United States opens its borders? How much surplus is transferred from domestic workers to domestic firms?

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Managerial Economics: labor demand for low-skilled workers in the
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